The latest edition of Peak NV features Barnard Vogler & Co.’s Director Brittany Capurro breaking down the tax provisions of the recently signed One Big Beautiful Bill Act (OBBBA), a comprehensive law affecting individuals aged 65 and older.
Signed into law in July 2025, the OBBBA introduces a range of tax changes that impact 2025 filings and beyond. Brittany highlights key provisions designed to provide relief for older Americans:
- Additional Standard Deduction: Seniors continue to benefit from increased standard deductions—$2,000 for individuals, $3,200 for married couples filing jointly—indexed for inflation.
- Senior-Specific Deduction: A new deduction may reduce or eliminate taxes on Social Security benefits. Analysis from the White House Council of Economic Advisors shows approximately 88% of Americans over 65 may qualify. The deduction can reach $6,000 per individual or $12,000 for qualifying couples.
- Estate and Gift Tax Exemption: The lifetime exemption rises to $15 million per person starting in 2026, preventing a decrease that had been scheduled under prior law.
- Expanded 529 Plan Benefits: Education savings accounts now cover more than college tuition, including certain K-12 expenses, apprenticeships, and educational therapy. The annual K-12 distribution limit will increase to $20,000 in 2026, and rolling funds from 529 accounts to ABLE accounts has been made permanent.
- Above-the-Line Charitable Deduction: All taxpayers who don’t itemize can deduct up to $2,000 (married filing jointly) or $1,000 (all others) for cash donations to qualifying charities, providing a tax benefit without itemizing.
- Extension of TCJA Provisions: Several provisions from the 2017 Tax Cuts and Jobs Act have been extended or made permanent, providing ongoing relief for older and middle-income Americans.
Brittany emphasizes that while the OBBBA introduces valuable tax relief for seniors, the law is complex and many provisions are temporary. She encourages individuals over 65 to review their tax situations carefully and consider consulting a professional to fully understand how the changes may impact them.
Read the full article in the latest Peak NV to learn more.
